Workers inspect the Rivian R1T electric pickup truck (EV) on the assembly line at the company’s manufacturing facility in Normal, Illinois, U.S., on Monday, April 11, 2022.
Jamie Kelter Davis | Bloomberg | beautiful pictures
Electric truck manufacturer Rivian car said it is laying off 6% of its workforce to save cash as it prepares for a possible price war across the industry.
In an email to employees seen by CNBC, CEO RJ Scaringe said improving the company’s operational efficiency should be a “core goal.” The company is focusing on ramping up production of R1 trucks and EDV delivery trucks that it builds for Amazonas well as developing its upcoming smaller R2 vehicle platform.
Scaringe says the cuts won’t affect manufacturing at Rivian’s plant in Illinois.
Rivian listed on the stock exchange through a successful initial sale by the end of 2021, raised nearly $12 billion. But since then, the California-based automaker’s stock has lost nearly 90% of its value, prompting the company to rethink its expansion plans as it heads toward profitability. Recently discount via Tesla and Ford Motor has led to concerns that other automakers may forced to reduce electric car prices in the context of increasing competition in the space.
Rivian has about $13.8 billion in remaining cash as of the end of September, after posting a $5 billion loss in the first three quarters of 2022. Last month, the company said it had slightly lowered its goal of producing 25,000 vehicles by 2022.
Rivian will report fourth-quarter and full-year results after US markets close on February 28.
Scaringe’s email details are first Reuters report. The company has about 14,000 employees.